This site, like many others, uses small files called cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website (Cookie Policy). However, if you would like to, you can change your cookie settings at any time.

Have your say on the new Insurance Times Five Star ratings - Commercial Lines & Personal Lines - the first at a glance guide to insurer experience created for brokers by brokers. See what brokers have been criticising or praising about the companies you use and click the Have your say link next to the insurer name to add your views.

Motor premiums hit highest level for Q1 since tracking began – ABI

Civil Liability Bill progress and new car registrations could be leading to lower premiums compared to Q4 last year, but Q1 premiums are still at their highest level since the ABI began tracking them

The ABI’s motor premium tracker shows that while premiums in Q1 have fallen since Q4 2017, they are still the highest for the quarter since tracking began (see graph below).

According to the ABI’s data, the average motor premium for Q1 2018 was £478, up £14 on the previous year.

This does signal a drop from Q4 2017, when the average motor premium was £13 more, at £491.

Data source: The ABI’s Motor Premium Tracker

The ABI suggests that the reason for the drop from the previous quarter is due to seasonal trends.

With new car registrations in March, there is a higher demand for motor insurance and more competition.

In addition, the announcement of the inclusion of discount rate reform in the Civil Liability Bill, which has now been read in the House of Lords, could have made the market more optimistic and resulted in a fall in prices.

Rob Cummings, the ABI’s assistant director, head of motor and liability, said: “While this small fall in the last few months gives some relief to motorists, it is in line with seasonal trends and the underlying cost pressures from things like personal injury claims remain.

“It can’t be right that for every £1 in compensation paid to whiplash claimants, an additional 47p goes to their lawyers. The CivilLiability Bill now going through Parliamentwill fix a broken system and help millions of motorists whose premiums had been going up and up over the last two years.”

The ABI’s numbers are at odds with Willis Towers Watson and confused.com’s tracker, which said that quoted premiums were now £768 on average, which is £13 less than in Q1 2017.